Pawel Kuskowski, CEO at London-based Coinfirm, a company focused on developing regulations technology, or Regtech, for blockchain-based financial assets, estimates that there’s $10 billion in stolen cryptocurrencies. In order to help victims recover their funds, Coinfirm has partnered with cybersecurity firm Krollwire to launch ReclaimCrypto.com.
There’s usually no recourse for people who’ve lost their crypto assets due to a malicious hack, exit scams, or Ponzi scheme. Explaining the nature of the problem, Kuskowski told CoinDesk:
“There is no one place where victims can go and get help. It’s almost like they are pleading to get someone interested in their case. In the end, they have to work it out themselves; see about getting a lawyer, perhaps in some other jurisdictions.”
CipherTrace: $4 billion in cryptocurrency lost in 2019
Analytics firm CipherTrace estimates that around $4 billion in cryptocurrency was lost in 2019. Kuskowski’s estimate takes historic events such as the infamous Mt. Gox hack into consideration, which accounts for approximately $1 billion (at current market rates) in stolen or lost funds.
There are around 200 cases, accounting for $1.5 billion, where users’ lost assets can be recovered, according to a market analysis performed by Kuskowski’s firm.
Coinfirm’s main service involves building anti-money laundering (AML) checks within cryptocurrency platforms. The company does this by examining transaction logs, which are analyzed using Big Data tools. Coinfirm reportedly works with about 50 exchanges by helping them leverage Regtech to improve the security of their platforms.
One of Coinfirm’s business partners, Kroll, obtains court orders that require internet service providers to provide information such as IP addresses that may be linked with a hack or a security breach.